Question

Deepak is working as a sales manager at a salary of Rs.1, 00,000 per month. He received 2 more job offers. He got an offer of Rs. 70,000 from Reliance Industry and offer of Rs. 85,000 from Tata Industry. What is his opportunity cost for working as a sales manager?​

Answer 1

Given :-

• Deepak is working for Rs 1,00,000

• He also received 2 offer .

• Reliance for Rs 70,000

• Tata industry for Rs 85,000

To Find :-

• Opportunity cost of being sales manager .

Solution :-

Opportunity cost refers to the value of a factor in it's next best alternative use .

So , here we have 2 opportunity costs

• For joining TATA industry .

• For being sales manager .

Opportunity cost for being a sales manager is the previous better alternative given to Deepak . Which is job at TATA industry of total 85,000 worth .

Hene opportunity cost for working as sales manager is 85,000 rupees